TALEO ANNOUNCES RECORD FIRST QUARTER 2006 FINANCIAL RESULTS
Announcement posted by Taleo 24 May 2006
Taleo Corporation (Nasdaq: TLEO), the leading provider of on demand talent management solutions, today announced financial results for its fiscal first quarter ended March 31, 2006.
Q1 2006 revenue increased by 22% year-over-year to over $22 million
Q1 2006 recurring application revenue increased by 21% year-over-year to over $18 million
Record number of new customers added in Q1; Total customer base grows to 518
We are very pleased with the companys performance for the first quarter of 2006, which was highlighted by strong growth in recurring applications revenue and customer acquisition, said Michael Gregoire, president and CEO, Taleo. The demand for talent management continues to be strong, and our leadership position and proven track record of customer success sets Taleo apart in the market place.
Taleo delivered the following results for the quarter ended March 31, 2006:
Revenue: Total revenue for the first quarter was $22.2 million, an increase of 22% on a year-over-year basis. Recurring application revenue for the first quarter was $18.2 million, an increase of 21% on a year-over-year basis.
Net Loss and Loss Per Share: Net loss in accordance with generally accepted accounting principles in the United States, or GAAP, was $0.6 million for the first quarter, compared to a net loss of $1.6 million for the same period last year. Net loss for the first quarter of 2006 includes share-based payment expense of $0.8 million pursuant to the adoption on January 1, 2006 of Financial Accounting Standards Board (FASB) Statement No. 123R, Share-Based Payment, which requires companies to expense the fair value of employee stock options and similar awards. Loss per share was $0.03 for the first quarter of 2006 based on 18.8 million average shares outstanding compared to loss per share of $23.17 for the same period in 2005 based on 70 thousand average shares outstanding.
Normalized Net Income and Normalized Earnings Per Share: Normalized net income (a non-GAAP financial measure), which excludes restructuring costs, loss on disposal of fixed assets, share-based payment expense, amortization of acquired intangibles, and accretion of dividends and issuance costs on preferred stock, was $0.7 million for the first quarter of 2006, compared to normalized net income of $0.6 million in the same period last year. Normalized diluted earnings per share was $0.03 for the first quarter of 2006 based on 25.4 million average shares outstanding compared to normalized diluted earnings per share of $0.03 for the same period in 2005 based on 18.9 million average shares outstanding.
Additional First Quarter Business Highlights:
Taleo added a record number of new customers in the quarter, bringing total customers to 518.
New Taleo customers added in the first quarter of 2006 include the following leading companies across a wide variety of industries: Alcatel, BorgWarner Inc., Cognos, El Paso Corporation, Lasso Energy Services, National Collegiate Athletic Association (NCAA), Sydney Airports Corporation Limited, Teach for America, Transfield Services, University of Toronto, and West Suburban Bank.
Taleo expanded the number of registered users during the first quarter of 2006 to a total of more than 588,000, up from approximately 527,000 in the previous quarter.
Taleo customers have used the Taleo solution to process nearly 40 million candidates and enable more than 1.3 million hires since inception.
Taleo launched Taleo Verify, powered by Verified Person, which provides background screening and verification services.
Taleo won the 2006 hrGOV award for The Most Innovative Talent Management Solutions, and Taleo Business Edition was named a Codie Award finalist in the category of Best HR Product or Service.
Taleo launched a new service offering to help clients manage the new OFCCP regulatory compliance for Internet Job Applicants.
Conference Call Details
In conjunction with this announcement, Taleo will host a conference call today at 5:00 pm (EDT) to discuss the company's first quarter 2006 financial results. To access this call, dial 800-289-0533 (domestic) or 913-981-5525 (international). A replay of this conference call will be available through May 29, 2006, at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 3094293. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's Web site, (www.taleo.com) and a replay will be archived on the Web site as well.
About Taleo Corporation
Taleo Corporation (NASDAQ: TLEO) delivers on demand talent management solutions that enable organizations of all sizes to assess, acquire, develop and align their workforces for improved business performance. Taleos customers use its suite of solutions to improve their talent management processes to reduce the time and costs associated with these processes and to enhance the quality, productivity and satisfaction of their workforces. Taleo currently has 518 corporate customers with more than 588,000 registered users who use our services to fill positions in almost 100 countries.
Forward-looking Statements
This release contains forward-looking statements, including statements regarding Taleos future financial performance, market growth and general business conditions. Any forward-looking statements contained in this press release are based upon Taleo's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Taleo's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Taleo disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including the possibility that the market for enterprise software does not develop as anticipated; the volatility of our stock price due to the difficulty in predicting operating results and the long sales cycle for our software; failure to develop new software products or enhance existing products; failure to retain key staff; the failure to maintain historical maintenance renewal rates; and the failure to properly protect our proprietary rights and intellectual property. Further information on potential factors that could affect actual results is included in Item 1A of Taleos Annual Report on Form 10-K, as filed with the SEC on April 17, 2006, and in other reports filed by Taleo with the SEC.
Non-GAAP Financial Measures
Taleo has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes normalized income from operations, normalized net income and normalized earnings per share. Taleo uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Taleo's ongoing operational performance. Taleo believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in Taleos industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures discussed above exclude restructuring costs, loss on disposal of fixed assets, share-based payment expense, amortization of acquired intangibles, and accretion of dividends and issuance costs on preferred stock.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure as detailed above. As previously mentioned, a reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.
Source: Taleo Corporation
Q1 2006 revenue increased by 22% year-over-year to over $22 million
Q1 2006 recurring application revenue increased by 21% year-over-year to over $18 million
Record number of new customers added in Q1; Total customer base grows to 518
We are very pleased with the companys performance for the first quarter of 2006, which was highlighted by strong growth in recurring applications revenue and customer acquisition, said Michael Gregoire, president and CEO, Taleo. The demand for talent management continues to be strong, and our leadership position and proven track record of customer success sets Taleo apart in the market place.
Taleo delivered the following results for the quarter ended March 31, 2006:
Revenue: Total revenue for the first quarter was $22.2 million, an increase of 22% on a year-over-year basis. Recurring application revenue for the first quarter was $18.2 million, an increase of 21% on a year-over-year basis.
Net Loss and Loss Per Share: Net loss in accordance with generally accepted accounting principles in the United States, or GAAP, was $0.6 million for the first quarter, compared to a net loss of $1.6 million for the same period last year. Net loss for the first quarter of 2006 includes share-based payment expense of $0.8 million pursuant to the adoption on January 1, 2006 of Financial Accounting Standards Board (FASB) Statement No. 123R, Share-Based Payment, which requires companies to expense the fair value of employee stock options and similar awards. Loss per share was $0.03 for the first quarter of 2006 based on 18.8 million average shares outstanding compared to loss per share of $23.17 for the same period in 2005 based on 70 thousand average shares outstanding.
Normalized Net Income and Normalized Earnings Per Share: Normalized net income (a non-GAAP financial measure), which excludes restructuring costs, loss on disposal of fixed assets, share-based payment expense, amortization of acquired intangibles, and accretion of dividends and issuance costs on preferred stock, was $0.7 million for the first quarter of 2006, compared to normalized net income of $0.6 million in the same period last year. Normalized diluted earnings per share was $0.03 for the first quarter of 2006 based on 25.4 million average shares outstanding compared to normalized diluted earnings per share of $0.03 for the same period in 2005 based on 18.9 million average shares outstanding.
Additional First Quarter Business Highlights:
Taleo added a record number of new customers in the quarter, bringing total customers to 518.
New Taleo customers added in the first quarter of 2006 include the following leading companies across a wide variety of industries: Alcatel, BorgWarner Inc., Cognos, El Paso Corporation, Lasso Energy Services, National Collegiate Athletic Association (NCAA), Sydney Airports Corporation Limited, Teach for America, Transfield Services, University of Toronto, and West Suburban Bank.
Taleo expanded the number of registered users during the first quarter of 2006 to a total of more than 588,000, up from approximately 527,000 in the previous quarter.
Taleo customers have used the Taleo solution to process nearly 40 million candidates and enable more than 1.3 million hires since inception.
Taleo launched Taleo Verify, powered by Verified Person, which provides background screening and verification services.
Taleo won the 2006 hrGOV award for The Most Innovative Talent Management Solutions, and Taleo Business Edition was named a Codie Award finalist in the category of Best HR Product or Service.
Taleo launched a new service offering to help clients manage the new OFCCP regulatory compliance for Internet Job Applicants.
Conference Call Details
In conjunction with this announcement, Taleo will host a conference call today at 5:00 pm (EDT) to discuss the company's first quarter 2006 financial results. To access this call, dial 800-289-0533 (domestic) or 913-981-5525 (international). A replay of this conference call will be available through May 29, 2006, at 888-203-1112 (domestic) or 719-457-0820 (international). The replay passcode is 3094293. A live webcast of this conference call will be available on the "Investor Relations" page of the Company's Web site, (www.taleo.com) and a replay will be archived on the Web site as well.
About Taleo Corporation
Taleo Corporation (NASDAQ: TLEO) delivers on demand talent management solutions that enable organizations of all sizes to assess, acquire, develop and align their workforces for improved business performance. Taleos customers use its suite of solutions to improve their talent management processes to reduce the time and costs associated with these processes and to enhance the quality, productivity and satisfaction of their workforces. Taleo currently has 518 corporate customers with more than 588,000 registered users who use our services to fill positions in almost 100 countries.
Forward-looking Statements
This release contains forward-looking statements, including statements regarding Taleos future financial performance, market growth and general business conditions. Any forward-looking statements contained in this press release are based upon Taleo's historical performance and its current plans, estimates and expectations and are not a representation that such plans, estimates, or expectations will be achieved. These forward-looking statements represent Taleo's expectations as of the date of this press announcement. Subsequent events may cause these expectations to change, and Taleo disclaims any obligation to update the forward-looking statements in the future. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause actual results to differ materially, including the possibility that the market for enterprise software does not develop as anticipated; the volatility of our stock price due to the difficulty in predicting operating results and the long sales cycle for our software; failure to develop new software products or enhance existing products; failure to retain key staff; the failure to maintain historical maintenance renewal rates; and the failure to properly protect our proprietary rights and intellectual property. Further information on potential factors that could affect actual results is included in Item 1A of Taleos Annual Report on Form 10-K, as filed with the SEC on April 17, 2006, and in other reports filed by Taleo with the SEC.
Non-GAAP Financial Measures
Taleo has provided in this release financial information that has not been prepared in accordance with GAAP. This information includes normalized income from operations, normalized net income and normalized earnings per share. Taleo uses these non-GAAP financial measures internally in analyzing its financial results and believes they are useful to investors, as a supplement to GAAP measures, in evaluating Taleo's ongoing operational performance. Taleo believes that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing its financial measures with other companies in Taleos industry, many of which present similar non-GAAP financial measures to investors. As noted, the non-GAAP financial measures discussed above exclude restructuring costs, loss on disposal of fixed assets, share-based payment expense, amortization of acquired intangibles, and accretion of dividends and issuance costs on preferred stock.
Non-GAAP financial measures should not be considered in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. Investors are encouraged to review the reconciliation of these non-GAAP measures to their most directly comparable GAAP financial measure as detailed above. As previously mentioned, a reconciliation of GAAP to the non-GAAP financial measures has been provided in the tables included as part of this press release.
Source: Taleo Corporation